Wix.com (NASDAQ:WIX) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Wix beat quarterly estimates: EPS was $1.42 versus $1.40 expected, while revenue of $570.17 million exceeded estimates and grew 12.9% year over year.
• Growth outlook held, but cash-flow expectations fell: Management maintained its full-year revenue and bookings outlook but lowered its 2026 free-cash-flow margin target to about 16%, citing increased investment in Base44 marketing and enterprise sales.
• Wix shares fell 1.4% on Tuesday; Bank of America also downgraded the stock to Underperform and cut its price target to $68.

Wix.com (NASDAQ:WIX - Get Free Report) released its quarterly earnings results on Tuesday. The information services provider reported $1.42 EPS for the quarter, topping the consensus estimate of $1.40 by $0.02, FiscalAI reports. Wix.com had a negative return on equity of 1.61% and a negative net margin of 8.19%. The business had revenue of $570.17 million during the quarter, compared to analyst estimates of $566.27 million. During the same period last year, the business posted $1.80 earnings per share. The company's quarterly revenue was up 12.9% on a year-over-year basis.

Here are the key takeaways from Wix.com's conference call:

• Base44 reached nearly $250 million in ARR, with stronger conversion, improving cohort retention and upgrades, and Q3 gross margin of 58%; management expects second-half margin around 60% and sees further improvement ahead.
• Wix highlighted new growth opportunities across its portfolio: Symphony reached millions of dollars in ARR within months of launch, while Studio Two’s open AI-enabled workflow is intended to attract agencies and support an enterprise offering.
• Wix is accelerating Base44 marketing and enterprise sales investment, lowering its 2026 free cash flow margin outlook to approximately 16%, from a prior target in the high teens. Management said spending will remain tied to its return-on-investment targets.
• Wix maintained its full-year outlook for low-teens bookings growth and low-to-mid-teens revenue growth; for Q4, it expects low-double-digit revenue growth, with bookings growth continuing to lag revenue.
• Management said the company had 25% fewer employees at Q3-end than in 2022 while delivering double-digit bookings growth and launching new products, and expects the core business’s free cash flow to improve further.

Wix.com Stock Down 1.4%

Wix.com stock traded down $0.98 during trading on Tuesday, reaching $68.77. The stock had a trading volume of 516,178 shares, compared to its average volume of 1,912,597. Wix.com has a 52-week low of $40.16 and a 52-week high of $136.80. The stock has a market cap of $4.01 billion, a PE ratio of -19.51, a P/E/G ratio of 38.27 and a beta of 1.06. The business has a 50 day moving average price of $77.36 and a 200 day moving average price of $70.42.

More Wix.com News

Here are the key news stories impacting Wix.com this week:

• Positive Sentiment: Q3 adjusted earnings of $1.42 per share and revenue of $570.17 million exceeded consensus estimates; revenue grew 12.9% year over year. Wix tops Q3 earnings and revenue estimates
• Positive Sentiment: Management expects revenue to improve in Q4 and for the full year, offering a constructive growth signal. Wix Q3 revenue rises; outlook improves
• Negative Sentiment: Bank of America cut its rating from Buy to Underperform and lowered its price target from $75 to $68, adding pressure after a sharp prior-session decline. Bank of America rating change
• Negative Sentiment: Wix reduced its 2026 cash-flow outlook, raising concerns about the quality of growth and overshadowing the quarterly earnings beat. Wix stock, downgrade and cash-flow outlook

Analysts Set New Price Targets

Several research firms have weighed in on WIX. Wall Street Zen raised Wix.com from a "hold" rating to a "buy" rating in a research report on Saturday, October 31st. Weiss Ratings raised shares of Wix.com from a "sell (d)" rating to a "sell (d+)" rating in a research report on Friday, September 11th. Morgan Stanley lowered shares of Wix.com from an "overweight" rating to an "equal weight" rating and lowered their price objective for the company from $112.00 to $60.00 in a research note on Tuesday, July 21st. Raymond James Financial lowered shares of Wix.com from a "strong-buy" rating to an "outperform" rating and lowered their price objective for the company from $75.00 to $70.00 in a research note on Thursday, July 30th. Finally, Evercore set a $95.00 price objective on shares of Wix.com in a report on Tuesday, August 4th. Ten research analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $89.33.

Insider Buying and Selling

In other news, Director Ron Gutler sold 5,718 shares of the firm's stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $85.42, for a total value of $488,431.56. Following the sale, the director directly owned 15,631 shares in the company, valued at approximately $1,335,200.02. This trade represents a 26.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shelly B. Meyer sold 479 shares of Wix.com stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $95.00, for a total transaction of $45,505.00. Following the sale, the insider directly owned 183,010 shares of the company's stock, valued at approximately $17,385,950. This trade represents a 0.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders bought 2,622 shares of company stock worth $157,032. Corporate insiders own 6.20% of the company's stock.

About Wix.com

Wix.com Ltd. is a cloud-based platform that enables individuals, businesses and organizations to create and manage websites. Its tools include customizable templates, a visual website editor and hosting, allowing users to build sites without advanced coding skills or develop more customized experiences.

The company also offers services for online businesses, including e-commerce features, appointment booking, payments, marketing tools and website analytics. Its products are designed to help customers manage multiple aspects of their online presence through one platform.

Founded in 2006, Wix is headquartered in Tel Aviv, Israel, and serves customers internationally.

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